Nice
I was just about to start taking a look at ways to get melee in third person myself, and you got something going here already. Looks like you may be using a raycast hit from invisible gun to cause damage given the cross hair. I considered that myself but reckon I will be working on some visuals and animations for fast and furious sword fights till proper third person features are implemented since this would be real restrictive where player character would need to be facing enemy directly to cause damage (no side swipes or even slightly off centre swipes being so close). Well done and curious to know if you went the invisible weapon route with this and how it really feels and reacts gameplay wise, currently I find melee even on enemy characters way too slow and kinda cumbersome. Fist and sword fights shouldn't be hit and miss slow motion with a grunt and a swish every now and then, so decent character animations and properly timed sounds are a must have for these.
I am kinda trying to work out why you are having to place the character so far to the side of screen and reckon your keeping yourself from being shot but wondering if you cant move the weapon forward in gunspecs, I always reckoned the firespot on any character or HUD weapon coordinates would be from FIRESPOT position. You can see this with the current Wizard staff where if you move character the projectile fires from a fixed position on the staff,not from behind the character, or is this just something which needs to be done with raycast weapons? Just curious.
Of major note to myself doing third person characters I have seen that the speed is still default as FPShooter where camera, and therefore character, runs at high speed, with the wee default wizards legs trying to keep up with the pace. So I have found myself reducing the speed to 35 and animating my characters at proper frame rates to look even remotely natural and stop sliding footsteps etc. Personally I feel there is just too much still needing done to make 3rd person more viable at this point, currently you got only 6 animation ranges to use idle/walk/run/fire/jump/die, but that's just me so well done on getting this far.